There has been a trend where commissary corporations or others with contracts with event sponsors attempt to have not-for-profits

act to serve alcoholic beverages at such events for a percentage of the proceeds but the not-for-profits must provide the liquor insurance. Those entities presently holding events or entities with concession contracts will attempt to have not-for-profits become responsible for liquor liability by providing some share of sales of such items. This is not acceptable.

The Elks cannot afford to allow Elks Lodges to misuse the Self-Insured Master Liability Program in this fashion. If the Lodges were insured by individual policies, they would not be allowed to function in this way in most cases because of underwriting rules. As has been stated previously, there have been recent verdicts of over 100 million dollars entered against other not-for-profit organizations where service was provided at such outside events.

The Elks Self-Insured Master Liability Program assumes the first 1 million dollars of each and every occurrence. The local Lodges’ assessments are predicated on the normal exposure derived from Lodge operations, not on expanded less controllable exposures outside the Lodge. With that in mind, it was decided that certificates of insurance naming anyone additional insured will not be issued for any Lodge when an event involves serving alcohol to the public.

The rule with the service of alcohol is that no person approaching intoxication is to be served under any circumstances. This is harder, if not impossible, to do in an event circumstance.

The Order cannot allow other organizations to use the Self-Insured Master Liability Program in this improper fashion. The Self-Insured Master Liability Program includes liquor coverage for service at the Lodge. Lodges should not assume they should participate in a commercial service that benefits other organizations or presents an exposure not related to the operation of the Lodge facility.